Opinion
Mint Quick Edit | Apple’s airlift: A good sign for India?
Summary
- Reports say Apple Inc airlifted iPhones from India to the US just before Trump’s new tariffs were declared. The question now is whether India can act as the iPhone-maker’s chief export hub.
As Donald Trump’s Liberation Day tariffs approached, Apple Inc apparently tried stocking up on iPhones in the US to cushion the blow that was to come. The iPhone-maker is reported to have airlifted as many as five plane-loads from India of its products over just three days in the last week of March in anticipation of barriers going up.
Also Read: Kaushik Basu: Trump’s tariffs will only steepen America’s slide
With a 26% tariff declared for Indian exports from 9 April onwards, Apple’s late scamper looks clever in hindsight. What happens next is the question.
Chinese exports face US levies of 104%, so India will have a relative advantage as Apple’s sourcing base. This could divert the bulk of iPhone production from China to India.
Also Read: Think different: Consider a smartphone tariff cut to sustain an Apple-led export boom
What the White House wants, though, is for Apple to relocate assembly lines to the US. This may prove costlier, even if robots are used heavily. While the company has always had thick margins, it may not be able to pass extra costs on to its American buyers, which could dampen its sales just as grumbles arise over its slow progress on Apple Intelligence.
Also Read: The iPhone needs a new strategy to salvage Apple Intelligence
With iPhones worth ₹1.5 trillion exported from India in 2024-25, the stakes for India’s export-hub story are high. Let’s wait to see what Apple decides.
